The Nifty IT index jumped 4.1% on Thursday after India's top two software exporters raised their revenue growth guidance for FY27, citing accelerating demand for artificial intelligence-related services and cloud transformation projects. TCS guided for 11-13% constant currency growth while Infosys raised its guidance to 10-12%, both above earlier market expectations.
The guidance upgrades reflect a significant pick-up in deal signings, with TCS reporting total contract value of $14.2 billion for Q4 FY26 — its highest-ever quarter. AI-enabled services now account for over 18% of incremental deal value, with clients across BFSI, healthcare and retail deploying generative AI in production environments at scale for the first time.
Wipro, HCL Technologies and Tech Mahindra also participated in the sector rally, gaining 2-3% each. Analysts note that after a muted FY26, the Indian IT sector appears to be entering a multi-year upcycle driven by AI adoption. Risks from US visa policies, potential client budget cuts and competition from global AI giants remain key monitorables for the sector going forward.
